Outer Cape businesses stymied by visa denials

Friday

May 5, 2017 at 7:00 AM

Katy Ward

PROVINCETOWN — Longer lines, subpar customer service and shorter operating hours may be in store at local businesses this summer if the U.S. Congress doesn’t pass the Small Business Assistance Act, which would reinstate returning H-2B visa exemptions.

Patrick Patrick, owner of Marine Specialties and president of the Provincetown Chamber of Commerce, lost five or six H-2B visa workers from Jamaica this year — one has worked for him for 20 years. Though the applications were filed on time, the visas were denied.

“We’re overwhelmed already,” Patrick said on Saturday. “We have merchandise coming in and right now I have two workers on the floor when there should be five or six. We have merchandise piled to the ceiling. It’s already a mess and we haven’t started the season.”

H-2B visas are issued to foreigners who come to the U.S. to work for up to 10 months, and only employers who prove they are unable to hire American staff can apply for them. J-1 visas, which have not been problematic this year, are issued to university students from other countries so that they may work during their school break.

Patrick is one of many businesses owners on the Outer Cape who did not fit under this season’s H-2B cap. The problem started in late September, when the returning-worker provision expired and Congress failed to renew it. That provision allowed foreign workers in the H-2B program to return without being counted toward the 33,000 biannual nationwide cap. The program accepts 66,000 applications per year split into two rounds — one round from Oct. 1 to March 31 and another from April 1 to Sept. 30. This year the summer season cap was filled in one day on March 13, about a month earlier than last year.

“We will have to hire extra J-1 workers and or American workers and most will be students,” Patrick said. “The downside is we won’t have a crew for the fall. I’m already canceling trips because I don’t expect to be able to leave without an experienced and reliable crew. I can’t even think about leaving for a day. … A labor shortage affects everyone, even businesses that don’t use H-2B workers. If there is a shortage of labor it’s going to affect all the businesses in town in one way or another.”

But Patrick said there might be hope, especially after his recent visit to Washington, D.C., where he met with other small business owners and congressmen.

Currently a bill — the HR-1627 Small Business Assistance Act, introduced on March 20 by Rep. William Keating and endorsed by 32 other congressmen — is on the table. If passed, it would reinstate the returning-worker exemption and create a one-time fix for fiscal 2017. The bill would be retroactive, allowing workers to return for the 2017 summer season. Congress is working to reach an agreement on the FY17 spending package by midnight on Friday.

“I don’t think anyone in Washington is sure what is going to happen. It’s up in the air at this point. It’s definitely not a done deal, I’d say 50-50 at best,” Patrick said. “We still need a permanent solution. We can’t keep doing this every year.”

David Silva, owner of the Red Inn in Provincetown, said the returning-worker provision’s expiration cost him two cooks, one of whom has been working there for more than 14 years, and two housekeepers.

“If the returning-worker exemption doesn’t pass on Friday, it will be a great hardship and tragic thing,” Silva said by email. “Not only for all those businesses who got shut out but more so for all those returning workers who depend on their hard-earned income to make their and their families’ lives better. It will also be tragic for all of the visitors who come to spend their vacation dollars in our towns, who will have less than great experiences with businesses being understaffed, which leaves a bad taste in people’s mouths and can have a ripple effect on future year’s revenues as people go elsewhere.”

Silva also said fewer workers could mean fewer hours of operation, which could cut into the town’s tax revenues.

Other businesses such as the Mayflower Cafe in Provincetown and the Pearl Restaurant in Wellfleet also did not make this summer’s cap, but both declined to comment.

Purple Feather owner Peter Okun said he is one of the lucky ones because his six Jamaican H-2B workers made it in under the cap.

“These H-2B workers are like my family,” he said. “They come here and know their jobs better than I do. They practically run the place. … This is huge for the town as a whole. There is so much that it impacts. Beyond the town and restaurant and hotels, what I think of first is how it impacts these people’s lives. Their careers are based on coming here and working.”

Even businesses who hire J-1 rather than H-2B workers said staff problems will affect the Cape’s seasonal economy.

David Oliver at Cape Tip Sports has his J-1 workers, but said he fears for restaurants that rely on the H-2B visas. “I don’t think there’s going to be enough workers this year,” he said. “The restaurants will definitely be in trouble and it will definitely affect our economy if we can’t get these workers down here. The town relies on its restaurants.”

“The broad range impact will be enormous,” said Theresa Cancelliere, owner of Moda Fina, who has hired three J-1 visa workers from Bulgaria. “We need to rely on people from out of town. If I didn’t have these workers I would have to cut down my hours and that’s a really tough situation. … The town is doing a lot to bring more day-trippers to town, but it’s not going to be good if there’s not enough staff working in shops.”

Cancelliere said that few Americans are applying for jobs in stores or restaurants, and Patrick agreed.

“We also hire Americans, but we don’t get a lot of American applicants. We don’t have enough kids for a high school and we have thousands of jobs to fill. And the kids that are here already have jobs,” Patrick said. “It will be a big problem if we don’t get back our most experienced people working the store.” The one American student who applied for a job this year, Patrick said, was hired on the spot.

Housing is another problem.

“Housing is challenging on top of it, but there are a lot of employers that are working and trying to find solutions — whether buying properties or building units,” he said. “We need more housing. It’s definitely an issue and it’s not getting better.”

Local immigration lawyer Matthew Lee said during a small business forum at the Sage Inn Lounge on April 12 that it is difficult to persuade American workers to apply for seasonal jobs when the cost of living on Cape is so high.

“Foreign workers have been more willing to take short-term gigs,” he said.

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